According to CBRE South Asia Pvt. Ltd., India's luxury housing segment (units priced at INR 4 crore and above) witnessed significant growth in sales, showing an approximate 37.8% Y-o-Y increase during the Jan-Sep’24 period.
Total sales of luxury units during the Jan-Sep’24 period stood at 12,625 compared to 9,160 units during the same period last year. Delhi-NCR, Mumbai, and Hyderabad emerged as prominent markets, accounting for nearly 90% of the total luxury housing sales across the top seven cities. Further, Pune recorded a noteworthy increase in luxury sales activity, with 810-unit sales in the same period.
In terms of quantum luxury residential unit sales, Delhi-NCR topped with sales of 5,855 units, a 72% Y-o-Y increase, followed by Mumbai at 3,820 units, recording 18% Y-o-Y growth.
A similar trend prevailed during the Jul-Sep’24 quarter in the luxury housing segment across the top cities, registering an 82% Y-o-Y increase in sales. The quarter witnessed total sales of ~4,360 luxury housing units compared to ~2,390 units during the same quarter last year. During the quarter, cities including Delhi-NCR and Mumbai predominated housing sales, collectively accounting for about 90% of total sales. Moreover, Kolkata saw a notable 1.6-fold increase in luxury residential sales.
The surge in demand for luxury housing has been primarily attributable to a growing preference among affluent buyers for enhanced amenities and more spacious living areas that complement their multifaceted lifestyles. Moreover, the increasing aspirational class has significantly contributed to the increased demand for luxury properties. Furthermore, the rise in NRI and astute domestic investors in the Indian real estate market has considerably fueled the heightened demand for luxury residences.
This trend aligns with the shift in buyer preferences towards high-end units launched by leading developers, as evidenced by the substantial market share of tier-I developers. This shift is anticipated to persist, reflecting the evolving expectations of contemporary homebuyers who are now more discerning and informed regarding developer reputation, execution capability, and financial stability.
The sector maintained a strong performance in absolute numbers, with over 225,000 units sold during this period. The steady demand has encouraged developers to introduce new projects and additional phases, adding approximately 215,000 units to the market. Mumbai, Pune, and Bengaluru collectively represented 64% of total sales between January and September 2024.
Boosted by strong market dominance, Mumbai, Pune, and Hyderabad collectively accounted for 64% of the cumulative unit launches from Jan-Sep’24. The share of mid-range projects in total sales for the first nine months of 2024 was about 44%, followed by high-end and affordable projects.
In the Jul-Sep’24 quarter, sales exceeded approximately 68,400 units, accompanied by over 62,000 new unit launches. The cumulative share of apartment launches for Mumbai, Pune, and Hyderabad stood at 65%. Similarly, the total share of sales for the same quarter attributed to Mumbai, Pune, and Bengaluru is also 65%. Mumbai topped the sales, holding a 32% share, followed by Pune with 18%, Bengaluru with 15%, and Delhi-NCR with 12%.
